September 6, 2015

In a move to boost investment in the renewable energy
sector, Moroccan government on Tuesday approved a bill to amend the existing
13-09 law on renewable energy development.

When adopted, the new law, bill number 58-15, will allow
renewable energy producers to sell surplus electricity to establishments
connected to the high voltage or very high voltage grid of ONEE, the state
owned utility responsible for the provision of electricity as well as the
operation of the transmission system.

The proposed changes will also raise the minimum capacity of
hydro power projects to 30 MW from 12 MW at present.

Morocco's national energy strategy is targeting to raise the
share of renewable energy to 42% of the total installed capacity in the country
by 2020, with solar, wind and hydro each contributing 14%.

The country has several big projects ongoing in the solar,
wind and hydro sector.

The Noor concentrated solar power complex is projected to
have total installed capacity of 500 MW with the first 160 MW starting
production by the end of this year.

On the wind side, there are several independent power
producers. The latest 300 MW project was commissioned at the end of 2014
bringing the total installed capacity to 787 MW and Morocco is expected to
launch a further 850 MW wind power tender by the end of 2015.

While awaiting take-off of investments in the hydro segment,
ONEE plans to invest MAD 400 million (USD 41.3m / EUR 36.7m) to extend the life
of existing hydro power production facilities and also conduct a detailed
feasibility study for future projects.